The automotive industry is undergoing a transformative period with Chinese electric vehicle (EV) manufacturers firmly setting their sights on the UK and Europe.

A session at AM Live in November invited leading industry experts including former Hyundai chief and industry veteran Tony Whitehorn (right), Bloomberg Intelligence’s global head of automotive research Mike Dean (centre), and Grant Thornton’s head of downstream automotive Owen Edwards to discuss the motivations behind Chinese EV manufacturers targeting these markets, the challenges they face, and their potential impact on the UK dealership community.

In the realm of electric vehicles (EV), a notable shift is occurring as Chinese manufacturers target the UK and Europe. This strategic move is not merely driven by the pursuit of new revenue streams in regions where the EV market is gaining momentum but also due to China’s domestic market reaching maturity.

The evolution of the domestic Chinese EV market plays a pivotal role in its global aspirations. Mike Dean, who recently visited China, provides insights into the Chinese EV market, noting, "It's an interesting market because, one, the economy hasn't recovered as strongly as they thought it would do post-COVID and secondly, it's just intensely competitive. You have 91 different brands in China, very much focused on battery electric vehicles and so the price competition is intense.”

Tony Whitehorn, a seasoned industry expert, shed light on this trend, emphasising the need for global expansion due to those shifting dynamics in China’s domestic market. "What's going on in the Chinese market? The Chinese market is softening and therefore, Chinese EV manufacturers fundamentally are looking elsewhere to try and get their revenue.”